Blade Air Mobility Takes Off: Beats on Q1 Revenue, Medical Soars, Reaffirms 2024 Outlook

Zinger Key Points
  • Blade Air Mobility beats Q1 FY24 revenue estimates, reporting $51.5 million, up 13.8% Y/Y.
  • Short Distance revenue declines 5.9% Y/Y due to inclement weather in Europe and lower passenger volume in Canada.

Blade Air Mobility Inc BLDE reported first-quarter FY24 revenue growth of 13.8% Y/Y to $51.5 million, beating the consensus of $49.5 million.

Short Distance revenue fell 5.9% Y/Y to $9.8 million due to significant inclement weather impacting the European business in the Swiss and French alps and lower passenger volume in Canada.

Flight Profit increased 41.5% Y/Y to $10.1 million, and the margin improved by 386 bps Y/Y to 19.7%, aided by strong growth in the Medical business.

Total adjusted EBITDA loss was $(3.55) million, compared to a loss of $(7.72) million a year ago, margin recovered to -6.9% from -17.1% prior-year quarter.

Passenger segment’s adjusted EBITDA loss stood at $(2.65) million vs. $(3.05) million a year ago. 

On the other hand, the Medical segment’s adjusted EBITDA rose significantly to $4.41 million from $1.88 million a year ago, driven by higher trip volumes and trip distances, both from existing and newly added hospital clients.

The company's net loss for the quarter declined to $(4.23) million, compared to $(10.19) million a year ago. EPS loss of $(0.06) beat the estimate of $(0.12).

The company's net cash used by operating activities totaled $(15.55) million. The company held cash and short-term investments of $151.0 million as of the end of the first quarter of FY24.

2024 Outlook: Blade Air Mobility reiterated revenue of $240 million-$250 million vs. $246.37 million consensus and sees positive adjusted EBITDA.

For 2025, the company continues to expect double-digit revenue and adjusted EBITDA growth.

 Melissa Tomkiel, Blade’s President, said, “We have closed on seven of the eight previously announced jet aircraft acquisitions since quarter end and are already seeing the cash flow benefits that come when you couple the significant scale of our Medical business with strategic aircraft ownership in our highest density markets.” 

“The vast majority of our flying will remain with third-party owned and operated aircraft as part of our layered, asset-light approach, enabling maximum flexibility, guaranteed availability and cost efficiency for our hospital clients.”

Investors can gain exposure to the stock via ARK Space Exploration & Innovation ETF ARKX and ARK Autonomous Technology & Robotics ETF ARKQ.

Price Action: BLDE shares are down 0.83% at $3.59 at the last check Tuesday.

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